Reagan Company planned to produce 20,000 units of product and work 100,000 direct labor hours in 2009. Manufacturing overhead at the 100,000 direct labor hours level of activity was estimated to be:

Variable manufacturing overhead Php 700,000

Fixed manufacturing overhead 300,000

Total manufacturing overhead Php1,000,000

At the end of 2009, 21,000 units of product were actually produced and 108,000 actual direct labor hours were worked. Total actual overhead costs for 2009 were Php1,025,000.

Instructions

(a) Compute the total overhead variance.

^a(b) Compute the overhead controllable variance.

^a(c) Compute the overhead volume variance.